How high yield can resist pressure of rising rates

As rates rise in the UK and US, managers are looking for fixed interest assets that offer protection...

As rates rise in the UK and US, managers are looking for fixed interest assets that offer protection against such increases. One argument in favour of high yield is that the duration on such paper is typically shorter than that available on government bonds. Barrie Whitman, manager of the Threadneedle High Yield fund, says rising interest rates in the UK and US are putting pressure on government bonds so high yield's shorter duration characteristics make the asset class particularly attractive in the current environment. "High yield is obviously benefiting from economic growth and also ...